Research On China's Water Pollution Liability Insurance

Water as one of the irreplaceable natural resources, which is human need. Water pollution and the lack of freshwater resources have become an important constraints complication to sustainable development of economic social. And will endanger descendant's welfare possibly. Water pollution accidents happened frequently has influenced on public health and social stability. After the water pollution accident, because of we don't have a consummate mechanism of deal with problems arising from an accident, the amends responsibility which are taken on by enterprises carry out hardly. The victim cannot obtain expiation necessary, which led to many social conflicts. So an effective mechanism for risk diversification is required.Then this paper proposes to carry out Water Pollution liability insurance in our country. Discussed the new insurance, which combined with actual conditions. Then expatiated introduces the water pollution liability insurance in our country water pollution government frame is necessity and feasibility. The article research on the following several aspects mainly: Firstly, in the paper, the calculation of economic losses caused by water pollution considered human health, industry, agriculture and other aspects of losses, and propose some reasonable formulas. Secondly, about the calculation of water pollution liability insurance premiums, we embarked from the basic insurance premium composition, considered the pure insurance premium and the expense adjunct computation. Based on the design theory, utilized the limited data, attempted under certain supposition condition determined the pure insurance premium. In aspect of expense, on the basis of previous studies, this paper designed to introduce the risk level of the linear method of calculating the additional costs, insurance rates which were used in our current environment insurance is unscientific by analysis, we should use different rates of premiums charged in order to incarnate fair and reasonable.the re-insurance calculation formula was also made. Thirdly, for the specificity of the risk of water pollution, BMS (bonus-malus system) should be introduced during the establishment of pollution liability insurance. Two kinds of BMS were comparatived and analysis, And the results is severe BMS can disperse risk effectively. Fourthly, this article carried analysis on benefit counterparts of water pollution by game theory.However, it is related all aspects of society work to establish water pollution liability insurance, not only use of security measures, but also legal, administrative, economic and other measures in order to protect water environment, we should change the traditional ecology view to considered how to protect posterity's benefit more from sustainable angle, and achieve the purpose of promoting social, economic and ecological sustainable development. The study of this paper can be referenced for the insurance practice as a theoretical basis, for hope that it has some reference value for establish China's water pollution liability insurance system.